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Innovative thinking
Moving government operations from ‘acting like a human’
to ‘thinking like a human’ through Intelligent Automation
2019 Texas Government Data Forum
June 27, 2019
2© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
With you today
Michael Caporusso
Solution Director in KPMG’s
Intelligent Automation
Practice
mcaporusso@kpmg.com
3© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
The perception of disruption
“While technology
disruption has
always been
an issue, the
difference today is
speed of this
transformation and
technology
availability”
98
%72%
See
technological disruption
as more of an
opportunity than a
threat *
Say that
rather than waiting to be
disrupted by competitors,
their organization is actively
disrupting the sector in
which they operate**
49%
45%
61%
Are concerned about the integrity
of the data on which they base
decisions **
Say they are not leveraging
digital as a means to connect to
their customers and
vendors/suppliers effectively **
Are concerned about integrating
cognitive processes and artificial
intelligence **
*Source: US CEO Outlook 2018 survey: Growing Pains offers insights into the greatest concerns of CEO’s and how they plan to pursue growth and technology driven disruption. Findings based on a study of nearly 400 US
CEOs, with annual revenues greater than US $500 million; 39% have greater than US $10 billion in revenues.
**Source: US CEO Outlook 2017 survey: Disrupt and grow offers insights into the greatest concerns of CEO’s and how they plan to mobilize for the fourth industrial revolution. Findings based on a study of the 3-year outlook
of nearly 400 US CEOs, with annual revenues greater than US $500 million; 32% have greater than US $10 billion in revenues.
4© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
The future of intelligent automation in government
$140M
600% ROI800%AND
50%Cantor Fitzgerald’s
research suggests that
as many as 110-140 million
FTEs could be replaced
by IA technologies, reducing
costs by 25 – 40%.
Recent research from the London School of
Economics suggests a return on investment in
robotic technologies between 600% and 800%
for specific tasks.*
A recent study by KPMG LLP reports that 50 percent
of respondents would be using Intelligent Automation
technologies at scale within 3 years.
Markets and
Markets estimates
that the AI, or
cognitive computing
marketplace, will be
valued at**billion by 2025
190.61$
26billion
$
39billion$
McKinsey’s 2017
report on the State of
Machine Learning and
AI estimated that, in
2016 alone,
companies invested
between $26 billion to
$39 billion in Artificial
Intelligence.
Morgan Stanley predicts that 50-60% of white collar work is automatable, and this will have a 30% labor cost reduction.
Gartner predicts that by 2020, smart
machines will be a top five investment
priority for more than 30% of CIOs.
Top
5*Source: “LSE - The IT function and Robotic Process Automation” – The London School of Economics and Political Science 2015
“**Source: Artificial Intelligence Market by Offering (Hardware, Software, Services), Technology (Machine Learning, Natural Language Processing, Context-Aware Computing, Computer Vision), End-User Industry, and
Geography - Global Forecast to 2025– Market and Market February 2018
5© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Intelligent automation marketplace is maturing rapidly
Cognitive technologies
81%Of CEOs are emphasizing trust,
values and strong culture to sustain
the organization’s future
These technologies —from robotic process
automation to cognitive automation—are advancing
at a staggering pace, and will disrupt almost every
business and industry.
Investment in cognitive technologies will
be an area of focus for almost 60% of
CEOs through 2020
45% say they are not effectively
leveraging digital to connect with their
customers
Connecting
with customers45%
60%
60% worry their organizations’ sensory capabilities
and innovative processes will not stand up to rapid
disruption
Active disruption
to gain insightStaying competitive
means embracing digital
86%said their organizations are
actively disrupting their
own sectors*
61% are concerned about integrating
cognitive processes and artificial
intelligence in the workplace.
The concern for
integration
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Source: 2017 & 2018* CEO Outlook Survey, KPMG LLP (June 2017 & June 2018)
6© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Classification of intelligent automation capabilities
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
ACT
RULES LEARN REASON
THINKlike a human
Basic process
automation
— Macro-based
applets
— Screen level & OCR
data collection
— Workflow
automation
— Process mapping
— Self executing
Enhanced
automation
— Built-in knowledge
repository
— Learning capabilities
— Ability to work with
unstructured data
— Pattern recognition
— Reading source data
manuals
— Natural language
processing
Cognitive
automation
— Artificial intelligence
— Natural language
recognition &
understanding
— Self-learning
(sometimes self
optimizing)
— Processing of super
data sets
— Predictive analytics/
hypothesis generation
— Evidence-based
like a human
Class I Class II Class III
7© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Targeting government back office functions
Agency functions
Human resources
— Employee onboarding and offboarding
— Payroll
— Time recording and compliance
— Repeatable tasks in ERP
— Email notifications
— Populating/aggregating employee Information
Citizen engagement
— Natural language processing – enabled analytics
— Social media mining/monitoring
— Predicting high-priority incidents
— Manual CRM updated
— Application data entry
Customer support
— Virtual agents (chatbots)
— Call center “agent assist”
— Task execution
Finance and accounting
— Record to report
— Plan to perform
— Procure to pay
— Azquire to retire
— Invoice processing/exceptions
— AP/AR actions
— Reporting
— Auditing
— Fillings
Fraud and data validation
— Interfaces to third-party sources
— Interfaces to internal systems
— Data quality improvements
Supply chain and procurement
— Controls management
— Inventory management
— Exceptions/fallout
Compliance
— Research/document review
— Document preparation
— Controls automation
Information technology
— Automate dashboards and metrics reporting
— Automate IT GRC controls execution/validation
— Implementation of system changes
— Incident management and response
— Communicate between system interfaces
— HW/SW requests/fulfilment
— Automated backups, activities, and upgrades
— UAM and IAM requests/reviews and removal
8© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Improving payment accuracy Government case study
Modernizing and accelerating a time-consuming and manual documentation intake validation process at
a healthcare agency with:
― Robotic process automation (RPA)
― Optical character recognition (OCR)
― Machine learning (ML)
― Natural language processing (NLP)
Agency’s challenge
Congressionally mandated
to annually measure the
accuracy of payments
42,000+records submitted for
evaluation
Limited funds and
resources allocated to
perform tasks
Untimely feedback to
stakeholders, given the
volume of submitted
records
9© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
After: 10 bots
Taking: 7 days
Government case study: Realized benefits
Average time per
record
67Work days
3,901Work days
Average time per
record
Projected duration to
review 42,634 records
with 1 reviewers
Projected duration to
review 42,634 records
with 1 bot
Before intelligent
automation
After intelligent
automation
Benefits
Annual cost and time savings
— $1M+ [estimated]
— 3 months
Improved customer experience
— Timelier feedback to customers
7 day vs. 4 months
— Identified human errors
Increased workforce satisfaction
— Specialized resources can
focus on more meaningful
reviews instead of clerical tasks
2 mins,
17 secs
43 mins,
55 secs
Before: 50 reviewers
taking 16 weeks
10© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Driving a new citizen service experience standard
Past Future
Personalized, empathetic experiences
Anticipation before problem arises
Streamlined, optimized channel mix
Single line of communication across channels
Contextual information provided to agent
Singular, integrated experience
Happenstance
Impersonal and mechanical
Reactive after problem occurs
Inefficient, high call volume
Repetitive and coherent channels
Agent searches for information
Fragmented, disjointed, and siloed
11© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Three trends that matter
In the future, the focus of service activities will no longer reside in a collection of buildings that house ‘call center agents’, but in a virtual ecosystem of digital and humanassistants.
Integrated
The citizen will demand
seamless integration
between self-service and
live-service.
Personalized & Enabled
The citizen will expect the
agent of tomorrow to know
what they’ve been doing,
where in the ecosystem
they’ve been trying to do it,
and their specific need.
Proactive
As citizen expectations
continue to rise, government
organizations must excel at
proactive citizen service
By 2020, 85% of all customer interactions
will be powered by a chatbot.1
1Gartner. Gartner Predicts a Virtual World of Exponential Change. (October 2016)
12© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Citizen experience of tomorrow
Personalization
Collect data through beneficiary opt-in questionnaires and
engagement program, and behavioral tracking and analysis
across digital channels
Intelligent Search
Enable information-rich, cognitive experience within
agency websites
By 2019, 75% of workers whose daily tasks involve the use of
enterprise applications will have access to intelligent personal
assistants to augment their skills and expertise. 1
Empowered Citizens
Equip citizens with actionable content and information to deliver a
personalized online experience & self-service capabilities
Real-time status management
Integrate click-and-collect and customer
wish lists into eligibility decisions
Real-time Information Dissemination
Send real-time eligibility information
notifications based on customers
location and online Health profile
Help & Support Enablement
Integrate help desk and other support
functionality to reduce friction in citizen
experience
Social Engagement
Gauge citizen sentiment and
trends through social media
Today’s average customers uses
2.7 channels per interaction
Applications
Click & Connect
13© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Intelligent searchArt of the possible
Stopbullying.gov:
With a vision towards shifting from
isolated content search to unified
answers, reduce complexity,
improve citizen access to
important content, and increase
value in both newly created and
existing content
14© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
To successfully
incorporate Intelligent
Automation within
processes and teams,
organizations must
proactively address the
impacts to their people
& the overall organization
in order to minimize
business disruption and
expedite the timing of
benefits realization.
Organizational & people impacts
Changing Behaviors
Adopting and adapting
the new ways of working
Leadership Vision
Agreeing on future state
vision for the
organization
Talent
Hiring, reskilling
and exiting talent
Culture Shift
Overcoming the
fear factor
Organizational
& People Impacts
Workforce Shaping
Adaptive workforce realignment for
evolving digital labor needs
Speed of Implementation
The rate of change is faster than
traditional process and system
implementations
Constant Change
Intelligent Automation
implementations will be iterative
and constantly evolving to
develop optimal workforce
productivity and ROI
Demands a Higher Purpose
Conversation
Employers will need to
understand and engage with the
impact they will have on society
Unique Characteristics of Intelligent Automation Implementations
15© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Getting started
“Size the Prize” – Evaluate processes by suitability for automation and effort to estimate overall
benefit potential
Conduct a Proof-of-Value – Demonstrate technology effectiveness and validate performance
Define a Deployment Roadmap – Outline steps to stand up an Intelligent Automation capability
and begin to capture the benefits
16© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Additional considerations & lessons learned
Establish an
enterprise-wide
capability
Select vendors
aligned with your
ambition
Start small; deliver
swiftly
Partner with your
technology function
Set your priorities
and the rest will
follow
Consider business
scalability
Strike the balance
of your digital
transformation
Build solid
foundations
Evolve your
analytics capability
Protect your
business case
Identify and
incentivize talent
Automation ‘horses
for courses’
17© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 878472
Questions to start thinking about today
It’s no longer business as usual
— Where can we streamline and enhance our citizen experience?
— Where can we reduce the number of mundane and respective tasks our workforce
performs?
— What message will automation bring to our workforce and how would the future look?
— What are the risks and costs we face when we have rework or corrections?
— Is our data telling us all we need to know?
— Can we offer more within our current footprint? Could we expand our scope/market
share of services we offer?
— Where are we with automation now and where can we expand?
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such
information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon
such information without appropriate professional advice after a thorough examination of the particular situation.
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rights reserved. NDPPS 878472
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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